They say over 95% of Forex traders lose. But we’d better to say over 99% of traders lose, because making some profit every now and then is different from consistently making profit. Some traders double their accounts within a short time sometimes. But then they wipe out their accounts the next month. A consistently profitable trader is someone who makes profit, even as low as 0.5% per month, consistently, while they have been able to repeat this success for a reasonable while like two years at least.
Are you such a consistently profitable trader?
Maybe not yet. But you can become such a consistently profitable if you follow an important rule. I have explained it in detail in my last video: How to Become a Consistently Profitable Forex Trader
When we talk about this important topic (making profit consistently), or when we say that day trading and scalping doesn’t work and you can only lose in it, some people send emails or post comments and say we are wrong, and they are consistently profitable day traders and scalpers. But when we ask them to send us their last two years of track record, they disappear. It has never happened that they reply and send their track record, simply because they are lying.
Many of them are fake trading gurus who sell trading systems, courses, packages, etc. They are not real traders, and so they don’t want people to become enlightened. Some of them are from market maker brokers that most of their profit is from the retail day traders and scalpers who wipe out their accounts all the time.
Becoming a consistently profitable Forex or stock trader has only one secret:
You should wait for your trading strategy to form a strong trade setup. When there is no setup, you should close the trading platform and come back the next day.
No doubt that you should follow the longer time frames (daily, weekly and monthly), otherwise it will be so hard not to trade when you sit at the computer for several hours per day as a day trader. Day traders push themselves to take at least one position every day, because it doesn’t make sense to sit at the computer for several hours every day, waiting for the markets to form a trade setup, but not to trade, and repeat this the next day as well.
Click Here to watch the video of my last night gold analysis.
Gold that had broken above a strong resistance level at $1920.8 on the monthly time frame has now reversed. This is what I expected about 10 days ago that gold broke above this resistance level. It seems that now gold is retested the broken resistance level. This is something that usually happens when a market breaks above or below a too strong resistance or support level respectively.
That is why 10 days ago that gold broke above the $1920.8 resistance level, I told you that it was not the time to buy gold, because the market was extremely overbought. Now the market is really retesting the broken resistance level:
This is more obvious on the weekly time frame. But we have to wait for the current weekly candlestick close to analyze again:
Click Here to watch the video of this part that starts from 10:58.
The bearish candlesticks that are forming on EUR/USD daily chart are not enough to say that such a strong uptrend is reversed. This is also were you should note the rule that I explained about becoming a consistently profitable Forex trader above. Weak reversal signals like this have to be ignored:
If this market goes sideways for a while and then forms a long trade setup above Bollinger Middle Band or at the bottom of sideways market, then it means the uptrend wants to continued and we can go long again.
Click Here to watch the video of this part that starts from 12:36.
GBP/USD is doing great. It has already formed a strong long trade setup on monthly time frame by 2020.03.01 and 2020.07.01 candlesticks. The only problem is that the current market price is only 430 pips below the downtrend resistance line:
At the same time, there is a smaller and local resistance line on the weekly chart that if GBP/USD breaks above the resistance line, it will be the best confirmation for the long trade setup that is formed on the monthly chart. It will be one of the best long trade setups ever:
Here, you can also see the discipline of waiting for the strong trade setups to form which is something that becoming a consistently profitable trader needs.
Click Here to watch the video of this part that starts from 14:29.
Click Here to watch the video of this part that starts from 15:34.
Click Here to watch the video of this part that starts from 16:23.
Please wait for my analysis today while you think about becoming a consistently profitable trader and the rule that you must follow to achieve it. If you are still interested in day trading, you can do it but not with the shorter time frames and sitting at the computer for several hours per day: A Strong Forex Day Trading Strategy